Debt-Free Forever by Gail Vaz-Oxlade (the beginning after the end read novel .TXT) 📕

How? One approach is to move from being Impulsive to Thoughtful. Stop choosing short-term gratification over long-term benefits. Saving for retirement might be boring, but it’s going to be really important when you finally stop working.

You can apply any of a hundred rationalizations to why you need to drive a certain kind of car, acquire a bigger house, or wear brand-name clothing. It isn’t about meeting needs. It’s about the “Having More Means a Better Life” Gremlin weaving its intoxicating spell.

If you’ve got the “Having More Means a Better Life” Gremlin on your back, keep a small notebook handy and every time you get an urge to shop, practical or not, write it down. Note where you were, what you wanted to buy or did buy, and how you felt. Note every time the “Having More Means a Better Life” Gremlin squawks at a prize, whether it grabs you online, at a store, or when you’re flipping through a flyer. No matter how often it chatters in your ear, make a note of it. And whether you buy the item or not, keep track of the Gremlin. Once you know what your weakest areas are, you can take steps to inoculate yourself against this Gremlin. Avoid the mall, the discount department store, the dollar store—anywhere the Gremlin exerts its power over you.

“I WORK HARD SO I DESERVE IT” GREMLIN

This Gremlin is, perhaps, the hardest of the spending monsters to combat. Having slaved away in the mines all day, you feel entitled to a pint with the boys, that spiffy new hat, or dinner out. You need a glass of wine to relax. You need a vacation. You need a new “whatever is hot right now.”

If you’re walking around with the “I Work Hard So I Deserve It” Gremlin in tow, you’re willing to exchange your future income (that’s what credit is) for stuff you think you deserve to have. I’ve had people tell me, “We work really hard, we deserve a vacation.” I’ve heard people say, “I have a great job, I deserve to drive a nice car.” And I’ve had folks inform me, “I do 12-hour shifts, I deserve dinner out.”

Hey, for all the people who want to drop $400 on the latest cell phone who have the money in the bank, I don’t have a thing to say to you. It’s your money; spend it any way you wish. But for the dopes who are planning to put that new phone on credit and then carry the balance around for a few years at some ridiculous interest rate (any interest rate), give your heads a shake.

The thing about this Gremlin is that it can trick you into pledging many years of future income for the pleasures you’re seeking today. It doesn’t care how much interest you’re going to have to pay, how much more expensive that “have to have” item will be when you tack on the interest, or how long it’ll take you to get out of debt. And it doesn’t care what else you may end up losing if your circumstances change and you find you can’t pay for that holiday you deserved.

Nowhere has the “I Work Hard So I Deserve It” Gremlin done more damage than in the arena of home ownership. We have come to believe we deserve to own our own homes. Never mind that we haven’t had the commitment, the discipline, or the foresight to save a down payment. Lenders have played into this delusion by offering borrowers far more credit than they should have access to. So people have bought homes they can barely afford. Foreclosure and disappointment follow.

The only people in this world who are entitled are children. When you make the decision to have a child, you’re also making the decision to put what you want behind what your child needs. Children are entitled to feel secure, to have enough food to eat, and a safe place to live. Not all children get the things to which they are entitled, sadly. But parents who put their own wants before their children’s needs are selfish and irresponsible. How can having a fifty-inch plasma TV be more important than the pain in your children’s eyes as they watch their home being repossessed? How can a shiny truck be more important than fresh fruit and veggies for your kids? How can a fancy handbag be more important than ensuring you have enough money to keep a roof over your child’s head if the worst happens?

If you don’t have an emergency fund and some savings, if you’re carrying around a pile of consumer debt, if your expenses exceed your income and you’re covering the difference with credit, it’s time to grow up. You are not entitled to anything for which you cannot afford to pay.

Dealing with the “I Work Hard So I Deserve It” Gremlin requires bringing to mind the reality of your financial circumstances so that you don’t rationalize spending money you can’t afford to spend. Consider making a credit card condom or a debit dinger (Australian for condom) with a pertinent message. An envelope into which your credit or debit card sits snugly, the credit card condom helps to protect you from going further into debt. The cover should convey a reminder to yourself. Here are some examples:

• Do you have the money to pay this purchase off in full when the bill comes in?

• You already owe $2,500 on this card.

• Is this a need or a want?

The credit card condom will work best if you come up with a message that makes you stop and think, so create a message that will remind you of your goals.

• You’re trying to save $3,400 for that fabulous vacation. Will buying this [whatever] get you closer to that goal?

• You’re setting up an emergency fund. You can spend this money now or you can use it to meet your